Reinvestment

Reinvestment

The channeling of public and private resources into declining neighborhoods in a coordinated manner to combat disinvestment.

Reinvestment

repeated or supplementary investment in a given sector of the economy or in a given country using capital derived from profits. The term “reinvestment” is usually used with respect to foreign capital.

Reinvestment came to be practiced widely by the capitalist monopolies after World War II (1939–45) with the collapse of the colonial system of imperialism and the development of regional integration. Its purposes were to circumvent various forms of prohibition on the import of capital into a country or a region or to avoid payment of taxes levied in connection with the transfer of profits abroad.

Reinvestment by foreign companies in the developing countries is one of the newest methods of neocolonialism. Such reinvestment makes it difficult for the government of the developing country to monitor the movement of foreign capital, especially when the capital is reinvested in locally owned firms and enterprises.

Reinvestment by foreign companies in the developed capitalist countries is usually practiced to circumvent protectionist barriers and penetrate regional economic associations. This practice is pursued by American companies operating in the Common Market countries. The companies are trying by reinvestment to enter the European market and receive the same privileges there as the local companies.

International corporations, which have large networks of branches, joint companies, and licensing agreements to restrict certain geographic zones of the market to a particular corporation, hold a special place in the practice of reinvestment. Inroads are made into a foreign market by building new enterprises or buying up local firms. In many cases, 25 percent of the necessary capital is taken from the reinvestment funds of the parent company, 50 percent from the reinvestment funds of its branches, and 25 percent from loans on the international loancapital markets.

Reinvestments and Hhs' reinvestment behaviour in existing housing stock have captured attention of researchers in Europe and in the US since the late 1960s due to changing housing policies by the end of that decade.

Further implications can be traced in the overall economy, in terms of total volume of capital engaged in reinvestments in comparison to new construction, volume of production activity for materials employed in reinvestment operations, etc.

Proceeds of the Kentucky Economic Development Finance Authority's health system revenue bonds series 2000 (Norton Healthcare, Inc), monies transferred from the debt service reserve fund securing the refunded bonds and sums paid by the escrow reinvestment agreement and option agreement provider (Morgan Guaranty Trust Company of New York) were used to refund the bonds.

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